The National Regulatory System for Community Housing (NRSCH) represents the national system for the regulation of community housing providers operating across New South Wales, Queensland, South Australia, Tasmania, Australian Capital Territory and the Northern Territory.
Community housing providers operating in Western Australia and Victoria are subject to the regulatory requirements of the respective states.
Although the NRSCH is a voluntary registration system, it is often a precondition of funding or assistance for policy or funding agencies within jurisdictions.
The NRSCH aims to ensure a well governed, well managed and viable community housing sector that:
- meets the housing needs of tenants; and
- provides assurance for government and investors.
For more information on the framework and objectives of the NRSCH, click here
Effective regulation establishes the governance infrastructure needed to ensure efficient and appropriate use of housing assets and increased investor confidence.
Investing in social and affordable housing
Investors have a key role in driving private capital into the social and affordable housing sector to create new housing stock.
How does regulation provide assurance for investors?
Effective regulation establishes the governance infrastructure needed to ensure efficient and appropriate use of housing assets and increased investor confidence.
It helps protect the investment of financiers by ensuring community housing providers (CHPs) are well governed and financially viable.
The existence of strong intervention powers, which are used only as a last resort, provide confidence in the regulatory system and encourage shared responsibility for identifying and resolving problems.
The intervention powers available to the Registrars are intended to provide for staged, proportionate intervention that reflects the seriousness and potential consequences of a registered housing provider’s failure to meet its obligations.
What restrictions does regulation place on securing investments?
The NRSCH does not place any restrictions on how CHPs choose to secure their obligations to financiers so long as they are consistent with their legal and contractual obligations.
What are categories of registration (Tiers) under the NRSCH and what does it tell us about a CHP?
The tier allocated to a CHP reflects the provider’s size and scale of operation taking into account its corporate structure. The category of registration or tier is not intended to be a measure of a housing provider’s systems or credit worthiness nor be a qualitative ranking. Investors and financiers must continue to undertake their own due diligence.
What is the incentive for financiers to invest in social and affordable housing?
Housing exists to benefit communities. A range of aids such as rate and tax rebates, planning concessions and land contributions are available to financiers wishing to invest in social and affordable housing.
For example, the Commonwealth government offers incentives for investment in affordable rental housing.